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Power Lunch.(ISSUES & INSIGHTS)(EDITORIALS)
Economic Policy: President Bush, Alan Greenspan and Paul O'Neill got together for lunch Thursday. We can only imagine how the conversation went:
Bush: These numbers out of the purchasing managers this morning are even worse than yesterday's GDP report . Al, I thought y'all said the economy was doin' fine.
Greenspan: That's what we thought a week ago. But I'll admit things are slowing down more than my numbers indicated.
Bush: Looks like the market thinks so, too.
O'Neill: That kind of surprises me. People on Wall Street said the market would turn up as soon as we hauled a few executives away in cuffs. And we got a couple more today -- from WorldCom.
Bush: I wouldn't be too sure. Investors don't like it when Wall Street's under investigation. Yeah, we need to tighten up the rules on accountants and corrupt CEOs. But we're kiddin' ourselves if we think that's gonna turn around the market or the economy.
Greenspan: I still think the economy will expand at an acceptable rate this year. Car sales were up in July, and our beige book discerned modest improvement in the manufacturing sector.
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